People Analytics

People analytics or HR analytics or workforce analytics is the application of data and statistical analysis principles to make intelligent decisions on several HRM issues. Among these are performance recruitment, employee engagement, performance management, employee retention and workforce planning. A combination of sources, including data from HRIS (Human Resources Information Systems), employee surveys, performance evaluation, and other relevant details, can be used to capture insights about the workforce. This information can be analyzed to make data-decisions using which HRM strategies can be optimized.

Example

Take the example of a multinational company having issues with employee turnover within its sales department. In order to get a clearer image of what is causing the turnover and find the solutions to it the HR department relies on people analytics. They dig down into the data of employee demographics, evaluation ratings, compensation, tenure and exit interview to pinpoint tendencies and relationships. Working on their research, they reveal things like some sales regions having higher turnover rates and/or other factors that contribute to employee retention. Equipped with such information, HR can create tailor-made interventions and strategies to design solutions that address the root causes of turnover and improve employee engagement and retention.